Yunhong Green CTI Ltd. Receives Non-Compliance Notification from Nasdaq Related to its Inability to file its 10-Q for the Period Ended June 30, 2024

Rhea-AI Summary

Yunhong Green CTI (Nasdaq: YHGJ) has received a non-compliance notification from Nasdaq due to its failure to file the 10-Q for the period ended June 30, 2024. This situation arose because the company's prior auditor, BF Borgers CPA PC, was suspended from practicing before the SEC. As a result, Yunhong Green CTI can no longer use BFB's audit reports or consent in future filings.

The company's new auditors, Wolf & Company, PC, need to perform additional procedures related to 2023 balances before reviewing 2024 filings. Yunhong Green CTI must submit an updated plan to regain compliance to Nasdaq by September 3, 2024. Nasdaq may grant an exception until November 11, 2024. If Nasdaq doesn't accept the plan, the company can appeal to a Hearings Panel.

Positive

• None.

Negative

• Received non-compliance notification from Nasdaq
• Unable to file 10-Q for the period ended June 30, 2024
• Prior auditor suspended, requiring additional work on 2023 balances
• Delayed filing of 2024 financial reports
• Risk of potential delisting if compliance plan is not accepted

Prior Auditor Suspended from Practicing, Requiring Additional Work to be Performed Prior to issuing 2024 Filings

LAKE BARRINGTON, IL, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Yunhong Green CTI Ltd. (Nasdaq: YHGJ) (“Yunhong Green CTI” or the "Company"), a leading manufacturer of custom film products, foil and latex novelty balloons, and flexible packaging products, today announced its receipt of a August 19, 2024 notice from The Nasdaq Capital Market indicating the Company’s non-compliance with Listing Standard 5250(c)(1), as the Company has not filed its 10-Q for the period ended June 30, 2024 as required.

As previously reported, BF Borgers CPA PC (BFB) was engaged as the Company’s independent registered public accounting firm until The Audit Committee selected Wolf & Company, PC as the Company’s independent registered public accounting firm as of April 1, 2024. On May 3, 2024, the Company became aware that BFB had agreed to be suspended from appearing or practicing before the SEC. Because of this, the Company may no longer use audit reports or consent from BFB in future filings. Without the 2023 audit report, the Company’s new auditors will need to perform procedures related to 2023 balances in order to be able to perform an effective review of required 2024 filings, including the Form 10-Q for the periods ended March 31, 2024 and June 30, 2024. The Company is working with its new audit firm to perform this work. Until this is completed, the Company will not be able to issue filings during 2024.

The Company previously submitted its plan to regain compliance no later than September 27, 2024, which the Nasdaq accepted.

The Company must update its plan to regain compliance to Nasdaq no later than September 3, 2024, at which time the Nasdaq may grant an exception no later than November 11, 2024. If the Nasdaq does not accept the Company’s plan to regain compliance, the Company may appeal that decision to Hearings Panel. The Company intends to submit its updated plan to regain compliance prior to the deadline.

About Yunhong Green CTI Ltd.

Yunhong Green CTI Ltd. is one of the leading manufacturers and marketers of foil balloons and produces laminated and printed films for commercial uses. Yunhong Green CTI also distributes balloon-inspired gift items and markets its products throughout the United States and in several other countries. For more information about our business, visit our corporate website at www.ctiindustries.com.

Company Contact:
info@ctiindustries.com
+ 1-847-382-1000

FAQ

Why did Yunhong Green CTI (YHGJ) receive a non-compliance notification from Nasdaq?

Yunhong Green CTI (YHGJ) received a non-compliance notification from Nasdaq because it failed to file its 10-Q for the period ended June 30, 2024, violating Listing Standard 5250(c)(1).

What caused Yunhong Green CTI (YHGJ) to delay filing its 2024 financial reports?

The delay in filing 2024 financial reports was caused by the suspension of Yunhong Green CTI's prior auditor, BF Borgers CPA PC, from practicing before the SEC. This requires the new auditors to perform additional procedures on 2023 balances before reviewing 2024 filings.

When must Yunhong Green CTI (YHGJ) submit its updated compliance plan to Nasdaq?

Yunhong Green CTI (YHGJ) must submit its updated plan to regain compliance to Nasdaq no later than September 3, 2024.

What is the deadline for Yunhong Green CTI (YHGJ) to regain compliance with Nasdaq listing standards?

Nasdaq may grant Yunhong Green CTI (YHGJ) an exception to regain compliance no later than November 11, 2024, if they accept the company's updated plan.